YES Bank share price extended losing streak for the third straight session on Tuesday, falling nearly 8 per cent on the Bombay Stock Exchange (BSE). The fall is despite the private lender denying the reports of fresh audit in a whistleblower complaint.
Earlier today, YES Bank share price gained as much as 2.04 per cent in opening trade to Rs 67.25 apiece on the BSE, the most since November 11, 2019, after the lender announced that it has acquired 20.61 per cent stake in Tulip Star Hotels over invocation of pledged shares.
"We wish to inform you that Yes Bank Ltd. has, pursuant to invocation of pledge of shares, acquired 949,930 equity shares having nominal value of Rs 10 per share, constituting approx. 20.61 per cent of the post-issue paid-up share capital as at September 30, 2019, of a listed company, namely, Tulip Star Hotels Ltd.," YES Bank said in a filing to the BSE.
YES Bank share price, however, soon slipped into negative terrain and fell 4.09 per cent to touch an intraday low of Rs 63.15 apiece against previous closing price of Rs 65.90.
On the National Stock Exchange (NSE), YES Bank shares were trading 3.87 per cent lower at Rs 63.30 per share against Monday's close level of Rs 65.85. The stock touched an intraday high and low of Rs 67.25 and Rs 63.15, respectively.
In a clarification to BSE on Friday, the bank said it has made necessary disclosure about whistleblower complaints against the bank and its founder Rana Kapoor in the financial results for the quarter ended September 30, 2019.
In September 2018, a whistleblower had raised allegations of irregularities in the bank's operations, potential conflict of interests in relation to its founder Rana Kapoor and misclassification of bad loans.
"The bank became aware in September 2018 through communications from stock exchanges of an anonymous whistleblower complaint alleging irregularities in the bank's operation, potential conflicts of interests in relation to the former managing director & CEO and allegations of incorrect NPA (non-performing loans) classifications," YES Bank mentioned in its September quarter earnings report.
Last week, Mint reported that Yes Bank's statutory auditor, BSR & Co., had sought a fresh audit into whistleblower complaints against the bank and ex-CEO Kapoor as it was not satisfied over the way the special audit was conducted by JLN US & Co.
Edited by Chitranjan Kumar